Some holiday homes resorts and shopping centers in the pipeline or already in progress will never be delivered as the local real estate market tightens and sales to non-residents decline, forecasts Dobromir Ganev, manager of local real estate agency Foros.
In contrast to 2007, when property transactions rose to 310,000, 2008 is likely to see a dip in that number, said Foros, giving no concrete figure for the anticipated decline.
The resort apartments market is experiencing the sharpest decline but the wider market is softening as well.
According to Ganev, some investors will find it difficult this year to complete their projects and to sell or rent them out. The downside is mainly due to the pullback among non-residents, especially UK second-home buyers.
The wobbly market and falling yields have prompted some owners of resort apartments to try to get out of their property, said Foros. company data shows that developers are currently stuck with some 22,000-23,000 unsold apartments in locations between Black Sea resort Sunny Beach down south to the border with Turkey and that figure does not include new projects that have been announced and the secondary market listings.
The data also indicates there are 3 mln sq m of resort apartments under construction nationwide with two thirds located in local sea resorts. The same is the area of the holiday homes still in the pipeline.
The market void left by UK buyers is being filled by Russian nationals with higher property requirements and disinclination to buy off-plan.
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